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UK house prices fall again as higher borrowing costs weigh-Halifax

Economic Indicators Oct 07, 2022 07:36
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© Reuters. FILE PHOTO: A person jogs past a row of residential housing in south London, Britain, August 6, 2021. REUTERS/Henry Nicholls

LONDON (Reuters) - British house prices fell for the second time in three months in September in month-on-month terms and rising borrowing costs are likely to exert "more significant downward pressure" soon, mortgage lender Halifax said on Friday.

House prices fell by 0.1% from August, Halifax said. In annual terms, house prices were 9.9% higher, the slowest such increase since January.

Kim Kinnaird, director of Halifax mortgages, said a recent cut to a tax for home-buyers - part of finance minister Kwasi Kwarteng's "mini-budget" - and the long-standing shortage of homes available to buy would help to support the market.

But further increases in interest rates, high inflation and the impact of higher mortgage borrowing costs on affordability "are likely to exert more significant downward pressure on house prices in the months ahead," Kinnaird said.

Kwarteng's announcement of unfunded tax cuts last month has fuelled expectations in financial markets of higher Bank of England interest rates with some economists forecasting a fall in house prices before long.

Halifax said London continued to have the slowest rate of annual growth in the country with house prices rising by 8.1% over the last year.

Last week, rival lender Nationwide said British house prices failed to rise in monthly terms for the first time since July 2021.

UK house prices fall again as higher borrowing costs weigh-Halifax
 

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Comments (6)
Rafeybacon OConnor
Rafeybacon OConnor Oct 07, 2022 14:25
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Time for the unsustainable UK hosuing market to wake up to reality
Garry Cooke
Garry Cooke Oct 07, 2022 11:45
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damn them all for normalizing the 35 year mortgage the sudden rize in property markets has done nothing for the next generation, only winners are the blood sucking estate agents…property maket needs a reset for all to benefit.
Elliot dd
Elliot dd Oct 07, 2022 8:34
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Fell 0.1% m/m, pension funds needed a liquidity injection… real estate is the last part of the house of cards
Jason Rich
Jason Rich Oct 07, 2022 8:07
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“Some economists” … says it all really
Milly Blessing
Milly Blessing Oct 07, 2022 7:52
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how about getting more courtry ownerships to invest
Milly Blessing
Milly Blessing Oct 07, 2022 7:52
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how about getting more courtry ownerships to invest
 
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